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Innovation in the Hungarian food economy

Author

Listed:
  • Jozsef TOTH

    (Corvinus University of Budapest, Budapest, Hungary)

  • Imre FERTO

    (Hungarian Academy of Sciences, Budapest, Hungary)

Abstract

The paper investigates the innovation process in the Hungarian agri-food sector using the concept of open innovation. The empirical analysis is based on the data from a 2011 survey of more than 200 small and medium size agricultural producers, food processors and retailers. There is determined the impact of open innovation and a company's absorptive capacity on the innovation performance employing two stage approaches. First, a cluster analysis is applied to categorise companies based on their open innovation absorptive capacity, firm and managerial characteristics. Second, using semi-non parametric probit models, there is found that open innovation positively influences the innovation performance for the product and market innovation. Estimations indicate that the absorptive capacity has positive impacts on the technological- and organisational innovation and on innovation propensity. The results suggest that there exists a considerable heterogeneity both within and between the supply chain segments regarding to the innovation performance.

Suggested Citation

  • Jozsef TOTH & Imre FERTO, 2017. "Innovation in the Hungarian food economy," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(1), pages 43-51.
    • Handle: RePEc:caa:jnlage:v:63:y:2017:i:1:id:196-2015-agricecon
    DOI: 10.17221/196/2015-AGRICECON
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    References listed on IDEAS

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